HMX Acquisition files liquidation plan, will dissolve as legal entity

By Caroline Salls

Pittsburgh, Feb. 1 - HMX Acquisition Corp. filed its plan of liquidation and related disclosure statement Friday with the U.S. Bankruptcy Court for the Southern District of New York.

Under the plan, the HMX debtors will liquidate and otherwise dispose of their remaining assets and dissolve as legal entities.

As previously reported, HMX Acquisition received court approval in December to sell substantially all of its assets to Authentic Brands Group, LLC entity ABG HMX, LLC and W Diamond Group Corp., as licensee.

The stalking horse bid provided a purchase price that will pay HMX's secured lender in full in cash, provide enough additional cash to pay all expected administrative claims and pay a projected dividend to unsecured creditors.

Specifically, the company said the total purchase price would equal the sum of the total amount of Salus pre-bankruptcy and post-bankruptcy lender claims, plus $5.1 million or $9.1 million for HMX's bankruptcy estates, depending on execution of a license agreement.

Treatment of creditors under the plan will include the following:

• Holders of administrative claims, priority tax claims and non-tax priority claims will be paid in full in cash;

• Holders of general unsecured claims will receive a share of liquidating trust assets; and

• Holders of equity interests and intercompany claims will receive no distribution.

HMX, a New York-based tailored clothing company, filed for bankruptcy on Oct. 19 under Chapter 11 case number 12-14300.

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